"RS" discloses second quarter 2012 revenue of 700.29 million baht with a net profit of 91.93 million baht, an increase of 50%. Its satellite TV business had a leap growth of 76%. It expects income from Spanish La Liga will lead to an increase in revenue in the second half of the year. It will pay an interim dividend of 0.10 baht. RS emphasizes on the strong positioning of entertainment and sports content business leader in Thailand.
Lad Prao — Mr. Darm Nana, Chief Financial Officer of RS Public Company Limited (RS), discloses that RS recorded 700.29 million baht in revenue in the second quarter of 2012 with a net profit of 91.93 million baht. Revenue was from two major business groups—media business which comprises TV, radio and in-store media, accounting for 40%; and content business which includes music, showbiz and sport, accounting for 60%.
Revenue growth was mainly from media business, particularly satellite TV which had an increase of 36% in revenue in the second quarter of the year compared with the first quarter, and a growth of up to 76% from the same period last year.
Satellite TV is in RS's TV business group comprising Sabaidee TV, YOU Channel, Channel 8 and YAAK TV which can make a leap growth. Their popularity among audiences is also guaranteed by a research of AGB Nielsen Media Research which finds all 4 channels of RS's satellite TV rank the largest audiences. Sabaidee TV ranks number one in all satellite TV channels and in music segment. It is followed by YOU Channel which ranks number two and YAKK TV ranks number five in music segment, while Channel 8 ranks number one in entertainment variety segment. Recently, their advertising rates are adjusted to be in line with popularity and quality of content with a rise of around 50%. It uses rating guarantee strategy as it is confident in its potential as the same to that of free TV. This strategy will be a pilot for RS's satellite TV business in the future.
At the same time, radio business by Sky High Network Company Limited continues a growth in revenue which rose by 32% from the same period last year. Cool 93 Fahrenheit remains ranking Thailand's number one radio station in easy listening segment for many consecutive years. It also expands to the Northern region with a new radio wave, FM 88, with the concept of ‘Chiang Mai So Cool' which gets a good response from both audiences and sponsors. Recently, it expands to Smart Phone with the launch of App Cool in the market. It gets an overwhelming response with 700,000 downloads and expects to reach more than 1 million downloads before the end of the year definitely.
Rising star business of RS this year is sport content business. RS gets the right to broadcast the Live Spanish La Liga Football League for 3 consecutive years (2012 - 2015) and the 2014 FIFA World Cup exclusively in Thailand. They can be viewed from SUNBOX satellite TV receiver which BIG 4, the satellite dish dealer group, will distribute and sell nationwide. It targets to have 500,000 boxes in sales in the first 4 months (July - October) and Special promotion from DTAC - Free Watching, Free Calls and Free Internet Access: Customers who buy a SUNBOX within October 31, 2012 and at least 3 million boxes within 2014.
"For RS's business plan, the company will move forward building the strength for both media and content business. But this year we will focus on satellite TV business and sport content business particularly as we have the right to broadcast the Live Spanish La Liga Football League for 3 consecutive years and launch RS Sport La Liga Channel which many sponsors join with good various activities and promotions. We are confident that we can have 3.2 billion baht in revenue as target by the end of the year easily. In addition, the company's board of director also approves an interim dividend payment at 0.10 baht as good news for RS shareholders as well," Mr. Darm concludes.